Latest data released by China Customs on Sunday, April 20 shows that since China implemented export restrictions on critical minerals, the export volume has been continuously declining, and buyers in some regions, especially in Europe, have been basically excluded from the supply chain. Reuters reported that despite the persistently high global prices of critical minerals, China's export controls on three key metals have kept the export volume at historically low levels, highlighting Beijing's increasingly dominant position in the global mineral supply chain.
China is the world's largest producer of three key metals: antimony, germanium, and gallium. Although these metals are niche, they play an indispensable role in clean energy, semiconductor manufacturing, and defense industries. Since 2023, Beijing has gradually included these three metals in the export control list and fully banned exports to the United States last December.
According to regulations, goods on the export list must apply for a license to be exported, and this process lacks transparency, allowing China to strengthen its control over mining and refining established over many years.
Latest data released by China Customs on Sunday, April 20 shows that since the implementation of the export restriction measures, the export volume has continued to decline, and buyers in some regions, especially in Europe, have been basically excluded from the supply chain.
Data shows that in the first quarter of 2024, China's antimony product exports decreased by 57% year-on-year, and germanium product exports dropped by 39%. The export volume of gallium in March reached the lowest level since October 2023. Although the export volume of gallium in the first quarter of this year was slightly higher than the same period last year, it was still far below the level before the restrictions were implemented in 2022.
Even with some antimony product exports, the destinations are becoming increasingly concentrated. In March, after five months, China resumed a small amount of antimony product exports to Belgium and Germany, but the quantity was far below the historical average. As for the Netherlands, which was once a major buyer, has not received any antimony products from China since September last year.
The decreasing trend in exports of these three metals has also drawn outside attention: China has just added seven rare earth elements to the export control list this month, and the focus now is on how many export licenses will be issued for these rare earths and what the approval speed will be. Exporters said that the application for a license is expected to take several months, and if the export target is the United States, the waiting time may be longer.
Since 2023, China has stopped exporting germanium and gallium to the U.S., and the export of antimony has been completely suspended since September last year.
China's reduced exports have prompted overseas buyers to seek alternative sources, driving up global prices, which in turn supports domestic prices in China. By April 18, the spot price of antimony in China has surged nearly two-thirds this year, reaching 230,000 yuan per ton (approximately $31,500), setting a new record high.
Source: https://www.toutiao.com/article/1829967547383812/
Disclaimer: This article only represents the author's personal views.